Steve has maxed out his credit card and owes $22,000. The annual interest on his credit card is 18.25%. a. The minimum payment for some credit cards is 2% of what you owe. What is Steve’s minimum payment? b. Suppose Steve continues to pay the amount found in part a, how long until he has paid off her credit card dept? Assume he doesn’t charge anything else. c. What is the total amount he spent to cover the $22,000 debt?
Steve has maxed out his credit card and owes $22,000. The annual interest on
his credit card is 18.25%.
a. The minimum payment for some credit cards is 2% of what you owe. What is Steve’s minimum payment?
b. Suppose Steve continues to pay the amount found in part a, how long until he has paid off her credit card dept? Assume he doesn’t charge anything else.
c. What is the total amount he spent to cover the $22,000 debt?
d. Suppose Steve decides to pay $750 per month, how long until he pays off the credit card?
e. How much does she save by paying $750 a month?
f. Suppose Steve is getting married in 25 months, what should he pay every month to clear hiscredit card debt by the time he is married?
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